Real Estate Investment Property – A Better Long-term & Short-term Investment

Investment in real estate has always been one of the most popular, profitable and beneficial decision for any person. The main purpose of investment in real property is to earn ‘return/profit’ on that investment. Most people believe that investment in real property is far more profitable and beneficial rather than investing your money in shares. No doubt shares investment is also profitable but it is profitable for only those investors who have invested a big amount of their money in the shares. Further, the stock market fluctuates rapidly and there is always uncertainty about the profit. But this is not the case with investment in real estate.

This article covers how great investment properties for sale can be used to earn a profit.

Investment Property – Long Term Investment:

Investment Property
The interesting fact about investment properties is that it can be used as a good long-term investment. Long-term investments are those investments that can hold for a year (12 months period) or more than a year. If a business or individual wants to invest their money in long-term investment to get long term benefits they can use the real-estate property for rental purposes. Because rental agreements are mostly comprised of a minimum of a 12-month period. It could be a house, commercial building or a storage house or workshop. The owner can easily make a profit from the monthly rental income that comes from the property.

Investment Property – Short Term Investment:

Short term investments are those investments that hold up for less than a 12-month period. If the owner of the property wishes to use real estate as the short term investment then he/she should opt for the resale of the property. It means that the owner needs to first buy a property that is great investment properties for sale and then look for the right buyer to sell the property. Depending on the current market rate, the profit can be less or more.

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There are two variations in the resale of the real estate property, one is to resale the property in its original condition. While the other option is the flipping of real estate property. Almost every other person knows the direct resale of the property and how it works. But only a few have the right idea about the ‘flipping of real-estate property.’

Flipping Of Real Estate Property:

Flipping Of Real Estate Property
It means that when an investor buys great investment properties for sale (resale), the property is remolded, redesigned or renovated before it is sold for a profit. Mostly, the profit on remolded and renovated properties is higher than reselling it directly without any renovation or remolding. This is because when the owner or investor remolds or redesigns the property, it is solely done for improving the condition of the property. Improved property means more value of the property and greater the value of the property, greater will be the profit on its sale.

Whether you are planning for a long-term investment or short-term investment, real-estate investment property comes with great profit and other long-term benefits for the investor. There is no doubt that the real-estate market is an ever-green investment option where the risk of losses is less as compared to other investment markets.